Re: Fusion deal-sge-Legal-DaBos...
in response to
by
posted on
Jan 09, 2007 06:22AM
"The only better scenario would be for you to gift EDIG $8.5 million...lol."
I respectfully disagree, and re-raise my original question: Why not just sell the shares on the open market? In case you haven't noticed, over the past months, the PPS has been pretty rock-solid at 16 cents or better. There have been a few hick-ups either way, but this is our apparent base (though I personally don't understand how that PPS is truly justified - but it is what it is). Do the numbers on that initial $500K from Fusion:
$500,000 / .12 = 4,166,666 shares via Fusion
$500,000 / .16 = 3,125,000 shares via open market
So EDIG is forfeiting better than one third more shares going the Fusion route - well over 1M shares, as opposed to simply selling shares on the open market, with no strings attached at all. And, as with going through Fusion, that money source won't dry up until they run out of authorized shares.
So there was gifting going on, EDIG to Fusion.
Yes, it is nice to have assurance of funding availability. The point I'm making is that the source already existed using EDIG's exact same resource - authorized shares.
Perhaps going this route has a better appearance to the market? As opposed to filing for sale on the open market and a probable PPS hit. But they had to file for this (which is essentially the same), and I note the PPS remains solid today.
Put another way, if EDIG sold those 4,166,666 shares at .16, they'd get $666,666, not just $500,000. $166,666 flushed.
Ah, but I KNOW nuttin'!
I might add that IMO this initial money is for the purposes I cited in my original post of this thread. That is, for burn and for a possible money hit as a result of the litigation with digEcor, and then maybe to promote eVU. As for eVU production, they supposedly already had a deal with a financial institution to cover production costs, so that shouldn't be the purpose of these new funds.
Perhaps some one can "show me the light" here with a reasonable explanation.
But I have to say that this reminds me of my working days in the aerospace/defense industry, when management made a decision that, to me, seemed very ill advised for a variety of reasons. I'd rack it up to "they must KNOW a lot more than me and/or are a lot smarter". Then the feces would come in forced contact with the circular osilator, and I'd be scratching my head (and become fully engaged in damage control).
SGE